Cory Diary : Multi-Years Compounded Performance

This is a long term tracking chart. The performance includes Dividend received however for ease of tracking, STI dividend was excluded. Therefore, will need to add about 3%+. There is already some elaborate study done on it so is quite safe to do it for aga-ration.

Annual and Multi-Years Compounded S$ Returns

One thing I like about this chart is setup one time without need for modification as is all in %. This is especially so for those who has heartburn to see absolute figures especially younger adults that just step into the adult world, and feels astronomical.

For this chart, there are two vertical scales. Left is to track annual returns. Right is to track Compounded Multi-Years Returns. They are put together because when I first have them drawn, there is good corresponding reference to each other in same scale with different chart representation. Over time the sense of different size proportion looks better if I could include Year 2008 GFC swing, and the scales differentiated.

The annual performance has been coming down over the years due to increasing portfolio size and risk management. It has stabilized for the last 7 years. Trying to breakout from it on risk perspective will be difficult mentally. However my recent venture into oversea markets may change the picture. The US stocks invested have stabilized and recent investment in HK Tech at lows (which can go lower). Moving forward it will be interesting to see how US and HK Markets exposures will do to the returns.

As the chart indicated, compounded returns multi years stood at 7.3%. Only the last figure of the years matter. As for STI, is 0.1% only. And if we include dividend it will be around 3%+. Take note this is S$ and I have written earlier that currency matters if we invest overseas due to strong S$.

Some people will be questioning why STI is so low. Relatively, STI has not been performing well. Another reason is the chart started on Year 2007 just before the Year 2008 GFC. Frankly it can be worst if it has not been held up by the banks and a few Reits this year.

Unfortunately you can't choose when you are born and so are the year we start investing. Take note past returns does not implied future returns.

Cory

2021-0809

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